(A)
No supplier
shall commit an unconscionable act or practice concerning a consumer
transaction in connection with a residential mortgage. Such an unconscionable
act or practice by a supplier violates this section whether it occurs before,
during, or after the transaction.

(B)
For purposes of division (A) of this
section, the following acts or practices of a supplier in connection with such
a transaction are unconscionable:

(1)
Arranging for or making a mortgage loan that provides for an interest rate
applicable after default that is higher than the interest rate that applies
before default, excluding rates of interest for judgments applicable to the
mortgage loan under section
1343.02 or
1343.03 of the Revised Code and
also excluding interest rate changes in a variable rate loan transaction
otherwise consistent with the provisions of the loan documents;

(2)
Engaging in a pattern or practice of
providing consumer transactions to consumers based predominantly on the
supplier's realization of the foreclosure or liquidation value of the
consumer's collateral without regard to the consumer's ability to repay the
loan in accordance with its terms, provided that the supplier may use any
reasonable method to determine a borrower's ability to repay;

(3)
Making a consumer transaction that
permits the creditor to demand repayment of the outstanding balance of a
mortgage loan, in advance of the original maturity date unless the creditor
does so in good faith due to the consumer's failure to abide by the material
terms of the loan.

(4)
Knowingly
replacing, refinancing, or consolidating a zero interest rate or other low-rate
mortgage loan made by a governmental or nonprofit lender with another loan
unless the current holder of the loan consents in writing to the refinancing
and the consumer presents written certification from a third- party nonprofit
organization counselor approved by the United States department of housing and
urban development or the superintendent of financial institutions that the
consumer received counseling on the advisability of the loan transaction. For
purposes of division (B)(4) of this section, a "low-rate mortgage loan" means a
mortgage loan that carries a current interest rate two percentage points or
more below the current yield on United States treasury securities with a
comparable maturity. If the loan's current interest rate is either a discounted
introductory rate or a rate that automatically steps up over time, the fully
indexed rate or the fully stepped-up rate, as applicable, shall be used, in
lieu of the current rate, to determine whether a loan is a low-rate mortgage
loan.

(5)
Instructing the consumer
to ignore the supplier's written information regarding the interest rate and
dollar value of points because they would be lower for the consumer's consumer
transaction;

(6)
Recommending or
encouraging a consumer to default on a mortgage or any consumer transaction or
revolving credit loan agreement;

(7)
Charging a late fee more than once with
respect to a single late payment. If a late payment fee is deducted from a
payment made on the loan and such deduction causes a subsequent default on a
subsequent payment, no late payment fee may be imposed for such default. If a
late payment fee has been imposed once with respect to a particular late
payment, no such fee may be imposed with respect to any future payment that
would have been timely and sufficient but for the previous default.

(8)
Failing to disclose to the consumer at
the closing of the consumer transaction that a consumer is not required to
complete a consumer transaction merely because the consumer has received prior
estimates of closing costs or has signed an application and should not close a
loan transaction that contains different terms and conditions than those the
consumer was promised;

(9)
Arranging for or making a consumer transaction that includes terms under which
more than two periodic payments required under the consumer transaction are
consolidated and paid in advance from the loan proceeds provided to the
consumer;

(10)
Knowingly
compensating, instructing, inducing, coercing, or intimidating, or attempting
to compensate, instruct, induce, coerce, or intimidate, a person licensed or
certified under Chapter 4763. of the Revised Code for the purpose of corrupting
or improperly influencing the independent judgment of the person with respect
to the value of the dwelling offered as security for repayment of a mortgage
loan;

(11)
Financing, directly or
indirectly, any credit, life, disability, or unemployment insurance premiums,
any other life or health insurance premiums, or any debt collection agreement.
Insurance premiums calculated and paid on a monthly basis shall not be
considered financed by the lender.

(12)
Knowingly or intentionally engaging in
the act or practice of "flipping" a mortgage loan. "Flipping" a mortgage loan
is making a mortgage loan that refinances an existing mortgage loan when the
new loan does not have reasonable, tangible net benefit to the consumer
considering all of the circumstances, including the terms of both the new and
refinanced loans, the cost of the new loan, and the consumer's circumstances.
This provision applies regardless of whether the interest rate, points, fees,
and charges paid or payable by the consumer in connection with the refinancing
exceed any thresholds specified in any section of the Revised Code.

(13)
Knowingly taking advantage of the
inability of the consumer to reasonably protect the consumer's interests
because of the consumer's known physical or mental infirmities or illiteracy;

(14)
Entering into the consumer
transaction knowing there was no reasonable probability of payment of the
obligation by the consumer;

(15)
Attempting to enforce, by means not limited to a court action, a prepayment
penalty in violation of division (C)(2) of section
1343.011 of the Revised Code;

(16)
Engaging in an act or
practice deemed unconscionable by rules adopted by the attorney general
pursuant to division (B)(2) of section
1345.05 of the Revised Code.